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House prices correct nationally but still some hot spots

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Here is another interesting Wellington real estate related news article that we thought may provide you with helpful information.

House prices have stabilised nationally over 2018, the Real Estate Institute says, but some regions, particularly Wellington and Otago remain hotspots.

One year ago (December 2017) the national average asking price for a home was $660,798 on realestate.co.nz. One year later (December 2018) it sits at $673,043.

This 1.9 per cent price increase is the lowest (year-on-year) for any December since 2012.

“While this may well be a correction rather than a trend, this past year has seen the market stabilise compared to the extremes of previous years,” says realestate.co.nz spokesperson Vanessa Taylor.

“We have had fluctuations in average asking prices throughout 2018 and in fact the national average asking price in December was 3.0 per cent up on the previous month (November 2018).

“However, the modest 1.9 per cent December 2018 increase compared to December 2017 reflects a smoothing out, compared to the upward trajectory of recent years.”

“One of the challenges for sellers and buyers at the height of rapidly escalating house prices in recent years was timing.

“Purchasing a house in a stable market reduces the pressure to make snap decisions,” says Vanessa.

“The Auckland region has naturally dominated movements in the average national asking price due to its size,”

“In December 2018 the Auckland region’s average asking price of $953,950 represented a 2.9 per cent fall compared to December 2017 but was a 0.5 per cent increase on the previous month,” says Vanessa.

New property listings in December 2018 in the Auckland region were down 17.7 per cent compared to December 2017 (1,569 properties).

Wellington’s record-breaking December and Otago hot on its heels

Two main regions, Wellington and Otago, recorded all-time high average asking prices and had an influence on the national asking price.

The Wellington region’s record-breaking December reflects a classic supply and demand situation.

Since realestate.co.nz began collating statistics 11 years ago, in December 2018 the Wellington region recorded an all-time asking price high, the lowest level of new listings in any one month (December 2018), and an all-time low in the total number of homes for sale.

“The Wellington region has always been a relatively tight market, but this December was exceptional,” says Vanessa Taylor.

The number of new listings (282) in the region was down 23.6 per cent compared to December 2017, while total stock (747 homes), was similarly down (23.0 per cent compared to December 2017).

The average asking price in the Wellington region lifted 1.1 per cent to $647,490 compared to November 2018.

“The relatively modest increase in asking prices in a tight market does offer opportunities for several scenarios, whether that’s to sell and buy in the same market, or to sell and move to another region within commuting distance, such as the Wairarapa,” says Vanessa.

The Otago region’s all-time asking price high was similarly modest……………

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